missing out on tax benefits, reduced business rates and gift aid
which could reach an astonishing£148m. Now government ministers are
urging the clubs to claim what they are entitled to. Because the vast
registered with the Inland Revenue as a 'CASC' - a Community Amateur
Sports Club - they are missing out on a number of financial benefits,
* Rate relief - at 80% on their business rates
* Exemption from corporation tax on trading income doubled to£30,000
and income from property doubled to£20,000
* Exemption from capital gains tax when they sell off assets
The CASC scheme also provides a range of benefits to encourage
communities to support their local clubs, including Gift Aid on
donations by individuals, worth an additional 28 pence for every
Gift Aid has already proved hugely successful to charities, giving
the voluntary sector£2.3billion in the last year.
Sports minister Richard Caborn and the economic secretary to the
Treasury John Healey visited Totteridge Cricket Club in North London
to highlight the benefits open to amateur sports clubs. Totteridge CC
applied for CASC status in March 2003, was approved the following
month, and now saves£3,710 per annum through the mandatory rate
relief that the status provides.
Mr Caborn said:
'Clubs are slowly getting the message about the huge benefits of
being registered as a CASC. But there are many thousands more which
are still missing out. My call to those clubs is a simple one - get
involved now and get saving. 'So far only 1,400 clubs have
registered. Cricket, with 300, leads the way - but other
high-profile sports like football and rugby union have fewer than 100
clubs in the scheme. They don't know what they are missing.
'The impact of better sporting facilities will be enjoyed by us all,
as the health of the nation improves. The introduction of the CASC
scheme underlines how committed we are to improving amateur sport.'
Mr Healey added:
'Today we are issuing a wake-up call to sports clubs to claim new tax
breaks simply by registering as a community sports club. Look at
Totteridge Cricket Club - they are making savings of£3,710 every
year now they are a CASC.
'A great saving - and all of that money can now be re-invested into
the club and its facilities. The CASCs scheme is putting more money
into developing sports facilities at grass roots level.
'There is also a range of tax incentives for donors. Gift Aid, for
example, means that supporters' donations are worth even more in
their clubs' hands. 'Of course it's not all about money, but without
the cash many communities will not get the chance to enjoy regular
sporting activity and the next generation of sportsmen and women -
the Jonny Wilkinsons, Graham Thorpes and Paula Radcliffes of the
future - may never develop.
'I urge club members to get on to their treasurers and take advantage
of the huge tax benefits available to grow and sustain their clubs.'
1. Eligibility for CASC -
Clubs wishing to access the reliefs available through the CASC scheme
must register with Inland Revenue. To be eligible for registration
* Be open to the whole community, without discrimination
* Be organised on an amateur basis, ie non-profit making. Surpluses
must be reinvested in the club. Distributions to members are not
* Have as their main purpose providing facilities for, and promoting
participation in one or more eligible sports, ie those recognised
by the Sports Councils
2. Benefits of CASC -
As of 1 April 2004 registered CASCs enjoy the following benefits:
* Mandatory relief of 80% on non-domestic rates (aka 'business
rates') for CASCs in England & Wales. The Scottish Executive has
announced plans to introduce mandatory relief when time allows, but
has as an interim measure introduced discretionary relief of 80% for
* Exemption from capital gains tax on disposals of assets
* Exemption from corporation tax on:
* bank and building society interest
* trading income up to£30,000.
* income from property up to£20,000.
The scheme also provides a range of benefits to encourage communities
to support their local clubs:
3. Top 10 registrations by sport as at 31 May 2004
Lawn Tennis 111
Multi sports 106
Rugby Union 97
Gaelic Football 51
3. For more information, follow the link to the Inland Revenue
website : http://www.inlandrevenue.gov.uk/casc